Note 3 - Investment Securities

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 3. INVESTMENT SECURITIES

The amortized cost and approximate fair value of investment securities classified as AFS are summarized below as of the dates presented (dollars in thousands).

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2022	Cost		Gains		Losses			Value
Obligations of the U.S Treasury and U.S. government agencies and corporations	$	30,370	$	134	$	(699	)	$	29,805
Obligations of state and political subdivisions		21,098		7		(2,727	)		18,378
Corporate bonds		33,477		—		(3,535	)		29,942
Residential mortgage-backed securities		298,867		10		(47,026	)		251,851
Commercial mortgage-backed securities		83,504		179		(8,492	)		75,191
Total	$	467,316	$	330	$	(62,479	)	$	405,167

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2021	Cost		Gains		Losses			Value
Obligations of the U.S Treasury and U.S. government agencies and corporations	$	21,143	$	152	$	(27	)	$	21,268
Obligations of state and political subdivisions		32,330		468		(213	)		32,585
Corporate bonds		27,777		235		(345	)		27,667
Residential mortgage-backed securities		200,696		711		(1,503	)		199,904
Commercial mortgage-backed securities		74,693		369		(977	)		74,085
Total	$	356,639	$	1,935	$	(3,065	)	$	355,509

Proceeds from sales of investment securities classified as AFS and gross realized gains and losses are summarized below for the periods presented (dollars in thousands). 

	Twelve months ended December 31,
	2022		2021			2020
Proceeds from sales	$	—	$	137,803		$	56,466
Gross gains	$	—	$	2,323		$	2,300
Gross losses	$	—	$	(2	)	$	(11	)

The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands).

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2022	Cost		Gains		Losses			Value
Obligations of state and political subdivisions	$	5,538	$	1	$	(127	)	$	5,412
Residential mortgage-backed securities		2,767		—		(257	)		2,510
Total	$	8,305	$	1	$	(384	)	$	7,922

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2021	Cost		Gains		Losses		Value
Obligations of state and political subdivisions	$	6,910	$	367	$	—	$	7,277
Residential mortgage-backed securities		3,345		105		—		3,450
Total	$	10,255	$	472	$	—	$	10,727

Securities are classified in the consolidated balance sheets according to management’s intent. The Company had no securities classified as trading as of December 31, 2022 or December 31, 2021.

The approximate fair value of AFS securities and unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized below as of the dates presented (dollars in thousands).

	Less than 12 Months					12 Months or More					Total
			Unrealized					Unrealized					Unrealized
December 31, 2022	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Obligations of the U.S Treasury and U.S. government agencies and corporations	$	16,017	$	(688	)	$	1,013	$	(11	)	$	17,030	$	(699	)
Obligations of state and political subdivisions		13,695		(1,427	)		4,524		(1,300	)		18,219		(2,727	)
Corporate bonds		19,606		(1,170	)		10,085		(2,365	)		29,691		(3,535	)
Residential mortgage-backed securities		134,419		(18,122	)		116,132		(28,904	)		250,551		(47,026	)
Commercial mortgage-backed securities		27,181		(2,632	)		32,432		(5,860	)		59,613		(8,492	)
Total	$	210,918	$	(24,039	)	$	164,186	$	(38,440	)	$	375,104	$	(62,479	)

	Less than 12 Months					12 Months or More					Total
			Unrealized					Unrealized					Unrealized
December 31, 2021	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Obligations of the U.S Treasury and U.S. government agencies and corporations	$	1,438	$	(25	)	$	668	$	(2	)	$	2,106	$	(27	)
Obligations of state and political subdivisions		10,803		(213	)		—		—			10,803		(213	)
Corporate bonds		10,197		(254	)		2,409		(91	)		12,606		(345	)
Residential mortgage-backed securities		156,862		(1,503	)		—		—			156,862		(1,503	)
Commercial mortgage-backed securities		44,055		(941	)		6,284		(36	)		50,339		(977	)
Total	$	223,355	$	(2,936	)	$	9,361	$	(129	)	$	232,716	$	(3,065	)

The approximate fair value of HTM securities and unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized below as of  December 31, 2022 (dollars in thousands). There were no HTM securities in a continuous loss position as of  December 31, 2021.

	Less than 12 Months					12 Months or More				Total
			Unrealized					Unrealized				Unrealized
December 31, 2022	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	3,536	$	(127	)	$	—	$	—	$	3,536	$	(127	)
Residential mortgage-backed securities		2,510		(257	)		—		—		2,510		(257	)
Total	$	6,046	$	(384	)	$	—	$	—	$	6,046	$	(384	)

Unrealized losses are generally due to changes in interest rates. The Company has the intent to hold these securities either until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their amortized cost basis. Due to the nature of the investments, current market prices, and the current interest rate environment, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2022 and 2021.

The amortized cost and approximate fair value of investment debt securities, by contractual maturity, are shown below as of the dates presented (dollars in thousands). Actual maturities may differ from contractual maturities due to mortgage-backed securities whereby borrowers may have the right to call or prepay obligations with or without call or prepayment penalties and certain callable bonds whereby the issuer has the option to call the bonds prior to contractual maturity.

	Securities Available For Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
December 31, 2022	Cost		Value		Cost		Value
Due within one year	$	1,082	$	1,072	$	915	$	915
Due after one year through five years		32,452		31,394		960		961
Due after five years through ten years		52,093		48,229		3,663		3,536
Due after ten years		381,689		324,472		2,767		2,510
Total debt securities	$	467,316	$	405,167	$	8,305	$	7,922

	Securities Available For Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
December 31, 2021	Cost		Value		Cost		Value
Due within one year	$	726	$	726	$	870	$	902
Due after one year through five years		14,189		14,327		1,875		2,018
Due after five years through ten years		51,988		52,376		4,165		4,356
Due after ten years		289,736		288,080		3,345		3,451
Total debt securities	$	356,639	$	355,509	$	10,255	$	10,727

At December 31, 2022, securities with a carrying value of $165.7 million were pledged to secure certain deposits, borrowings, and other liabilities, compared to $118.2 million in pledged securities at December 31, 2021.